Dubai real estate market softening

Interesting article from 2015. After a period of consolidation the Dubai property market is certainly back in vogue and relatively strong compared to overseas counterparts. The market we see today is very different to that in the 2008 crash with tighter regulations and more protection for developers and investors.

 

Hi,

I am Indian citizen, currently working in Kenya on work visa. I am interested to buy a property in Dubai. As far as I know, as a foreigner I need to buy a property worth more than 1 million dirham since I am a foreigner and do not have job in Dubai. However, I am not in a position to pay this amount on outright. Is there an option to buy a property of less than 1 million in Dubai if I don't want a residence visa? Are there home finance or home loan options for foreigners like me who do not work in Dubai? If yes, then what is the procedure? Also, once I buy a property in Dubai, does it guarantee residence visa for me and my family?

 

Dear Aksfat,

I don't know where you got your information from but you don't need to buy a property that is 1 million dirham worth, any property you are interested in whatever it costs you can purchase however, to get a residency visa yes the property has to worth over 1 million dirhams as the laws have changed over the past 10 years. A lot of people took advantage of that hence the law changed. The property also has to be fully rightfully owned by you and not on mortgage that's if you want the visa and the property is worth over 1 million.

 

There seems to be more confidence this time round in light of the new regulations introduced by the authorities. In the aftermath of the 2007/8 worldwide economic downturn it became obvious that Dubai was not prepared for such a monumental change in investor sentiment. Thankfully the authorities seem to have learned their lesson!

 

There does seem to be strong underlying demand for property in Dubai and the strengthening of property regulations has taken away some of the risk of years gone by. I would be interested to learn of the more popular areas of Dubai with regards to foreign investment in property.

 

I notice recently there is talk in the press that the double-digit property price increases of years gone by will not be repeated. Some in the mass media seem to have a downer on the Dubai property market but let's not forget this is a market which bounced back from the abyss. Do not underestimate the Dubai authorities and the Dubai property market!

 

The real estate market has improved. Probably the best time to invest into homes.

 

There are some encouraging signs about the Dubai real estate market but I think now is a time to be asset selective if you are looking to invest in the region, rather than the "olden days" when most assets appreciated (in the boom times).

News link on Google:-

https://news.google.com/news/search...state/dubai real estate?hl=en-GB&gl=GB&ned=uk

 

Thanks for your post, I think it's a nice introduction to the real estate market status in the Middle East. As you said, Middle East region isn't really attractive for investors due to the political uncertainty, dependency on oil, security, and other reasons. However, there are safe investment hubs like Dubai, Abu Dhabi, and the new rising destination that I wish we could dwell on, which is Bahrain.

 

For those looking to the region it is probably a matter of timing and being selective - Dubai always seems to lead the region, both up and down, but I would be interested to hear more about Bahrain.

 

The Dubai property market did see some positive changes in the end of 2017. So far, I have heard that the following months will attract more investors. We are likely to see it soften even further.

 

Historically Dubai has attracted investors looking for capital gains on their property investments. If prices do soften a little further will we see an increase in those investors looking to lock in relatively attractive rental yields?

 

Hi @Kate191905

We dont appreciate spamming other websites on this forum. It would be useful if you could post your thoughts otherwise I think you will be banned.

 

There are some encouraging signs about the Dubai real estate market but I think now is a time to be asset selective if you are looking to invest in the region, rather than the "olden days" when most assets appreciated (in the boom times).